Perceptron, Inc. EBITDA dropped on 165% and Revenue decreased on 9.3%
09/04/2019 • About Perceptron, Inc. (
$PRCP) • By InTwits
Perceptron, Inc. reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -6.2%
- Perceptron, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: $2m in FY2019, $1m in FY2018, $1m in FY2017, $1m in FY2016, $1m in FY2015
- The company has unprofitable business model: ROIC is -14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Perceptron, Inc.'s Revenue decreased on 9.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.7 pp from 8.5% to -6.2% in FY2019.
Gross Margin decreased on 2.4 pp from 37.8% to 35.4% in FY2019. SG&A as a % of Revenue increased on 2.9 pp from 21.8% to 24.7% in FY2019.
Net Income margin dropped on 13.2 pp from 4.4% to -8.8% in FY2019.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.9% in FY2019. The company showed almost no change in CAPEX/Revenue from FY2016 to FY2019. For the last three years the average CAPEX/Revenue was 1.4%. During FY2015-FY2019 CAPEX as a % of Revenue bottomed in FY2017 at 0.87% and was growing since that time.
Return on investment
The company operates at negative ROIC (-14.9%) and ROE (-15.3%). ROIC dropped on 25.7 pp from 10.9% to -14.9% in FY2019. ROE dropped on 24.0 pp from 8.7% to -15.3% in FY2019.
Leverage (Debt)
The company paid down all the debt in FY2019. Cash dropped on 21.4%.
Management team
The company's CEO Jay W Freeland is a founder and has spent 3 years with the company.
Financial and operational results
FY ended 06/30/2019
Perceptron, Inc. ($PRCP) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 74.405 | 69.135 | 77.947 | 84.693 | 76.822 | -9.3% |
| Gross Profit | 28.271 | 21.139 | 27.769 | 32.000 | 27.192 | -15.0% |
| SG&A | 20.397 | 20.316 | 17.347 | 18.469 | 18.980 | 2.8% |
| EBITDA | 1.061 | -7.247 | 4.013 | 7.224 | -4.730 | -165.5% |
| Net Income | -0.461 | -22.113 | -0.168 | 3.716 | -6.791 | -282.8% |
Balance Sheet
|
|---|
| Cash | 11.502 | 6.787 | 3.704 | 5.830 | 4.585 | -21.4% |
| Short Term Debt | 0.000 | 0.200 | 0.000 | 0.175 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.789 | 1.641 | 0.682 | 1.153 | 1.493 | 29.5% |
Ratios
|
|---|
| Revenue growth | 24.8% | -7.1% | 12.7% | 8.7% | -9.3% | |
| EBITDA growth | -71.1% | -783.0% | -155.4% | 80.0% | -165.5% | |
|
|---|
| Gross Margin | 38.0% | 30.6% | 35.6% | 37.8% | 35.4% | -2.4% |
| EBITDA Margin | 1.4% | -10.5% | 5.1% | 8.5% | -6.2% | -14.7% |
| SG&A, % of revenue | 27.4% | 29.4% | 22.3% | 21.8% | 24.7% | 2.9% |
| Net Income Margin | -0.6% | -32.0% | -0.2% | 4.4% | -8.8% | -13.2% |
| CAPEX, % of revenue | 2.4% | 2.4% | 0.9% | 1.4% | 1.9% | 0.6% |
|
|---|
| ROIC | -0.1% | -19.6% | 4.3% | 10.9% | -14.9% | -25.7% |
| ROE | -0.7% | -44.5% | -0.4% | 8.7% | -15.3% | -24.0% |
| Net Debt/EBITDA | -10.8x | | -0.9x | -0.8x | |
Peers in Electronic Equipment & Instruments
Below we provide Perceptron, Inc. benchmarking against other companies in Electronic Equipment & Instruments industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| SGOCO Group, Ltd ($SGOC) | -95.6% | 163.9% | -99.0% | 2,998.0% | |
| Hickok Inc ($HICKA) | -7.2% | 13.5% | 258.4% | 178.7% | |
| Electro Scientific Industries, Inc. ($ESIO) | -12.2% | 15.9% | -12.7% | 128.5% | |
| Microvision, Inc. ($MVIS) | 163.6% | 60.7% | -34.7% | 82.8% | |
| Huami Corporation ($HMI) | | 73.6% | 31.6% | 77.9% | 59.4% |
| |
|---|
| Median (63 companies) | 3.0% | 0.3% | 4.1% | 11.6% | 8.8% |
|---|
| Perceptron, Inc. ($PRCP) | | | 12.7% | 8.7% | -9.3% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intellicheck, Inc. ($IDN) | 57.1% | 80.0% | 85.5% | 91.3% | |
| Image Sensing Systems, Inc. ($ISNS) | 77.1% | 71.0% | 79.9% | 80.9% | |
| National Instruments Corporation ($NATI) | 74.1% | 74.5% | 74.5% | 75.4% | |
| Cognex Corporation ($CGNX) | 77.2% | 75.2% | 75.6% | 74.4% | |
| Applied DNA Sciences Inc ($APDN) | | 82.2% | 77.3% | 69.1% | |
| |
|---|
| Median (62 companies) | 42.0% | 40.7% | 41.7% | 40.9% | 37.1% |
|---|
| Perceptron, Inc. ($PRCP) | | 30.6% | 35.6% | 37.8% | 35.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Cognex Corporation ($CGNX) | 30.1% | 31.9% | 36.0% | 30.1% | |
| Coherent, Inc. ($COHR) | 16.7% | 18.9% | 24.9% | 26.6% | |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 26.9% | 23.5% | 16.1% | 23.9% | 23.1% |
| Electro Scientific Industries, Inc. ($ESIO) | -19.1% | -2.0% | -17.8% | 23.1% | |
| FLIR Systems, Inc. ($FLIR) | 22.8% | 21.3% | 20.0% | 21.7% | |
| |
|---|
| Median (62 companies) | 4.2% | 3.2% | 4.1% | 3.3% | 12.6% |
|---|
| Perceptron, Inc. ($PRCP) | | -10.5% | 5.1% | 8.5% | -6.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| SGOCO Group, Ltd ($SGOC) | 0.0% | 0.0% | 0.0% | 154.6% | |
| Wrap Technologies Inc ($WRTC) | | | | 61.4% | |
| ClearSign Combustion Corporation ($CLIR) | 80.3% | 22.1% | 17.4% | 17.7% | |
| LightPath Technologies, Inc. ($LPTH) | | 6.5% | 7.8% | 7.7% | 5.7% |
| Giga-tronics Inc ($GIGA) | 0.1% | 1.3% | 0.3% | 7.0% | |
| |
|---|
| Median (62 companies) | 1.9% | 2.0% | 1.6% | 2.3% | 1.3% |
|---|
| Perceptron, Inc. ($PRCP) | | 2.4% | 0.9% | 1.4% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | 83.3% | 39.6% | 55.3% | |
| Electro Scientific Industries, Inc. ($ESIO) | -19.7% | -7.1% | -22.9% | 31.5% | |
| Huami Corporation ($HMI) | | 4.5% | 38.6% | 30.1% | 27.7% |
| Coherent, Inc. ($COHR) | 13.1% | 15.6% | 24.0% | 21.5% | |
| Zebra Technologies Corporation ($ZBRA) | 0.9% | 2.2% | 10.2% | 20.8% | |
| |
|---|
| Median (74 companies) | 2.3% | 2.2% | 2.6% | 0.9% | 16.3% |
|---|
| Perceptron, Inc. ($PRCP) | | -19.6% | 4.3% | 10.9% | -14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Itron, Inc. ($ITRI) | 1.9x | 1.0x | 2.0x | 12.3x | |
| Track Group Inc ($TRCK) | | | | 12.2x | |
| Mesa Laboratories, Inc. ($MLAB) | 1.1x | 1.7x | 2.0x | 3.5x | |
| Trimble Inc. ($TRMB) | 1.7x | 1.1x | 1.3x | 3.4x | |
| MTS Systems Corporation ($MTSC) | -0.4x | 5.8x | 3.9x | 3.2x | |
| |
|---|
| Median (36 companies) | -0.7x | -0.9x | -0.7x | -1.0x | -1.4x |
|---|
| Perceptron, Inc. ($PRCP) | | | -0.9x | -0.8x | |
